Australian lamb the focus of US trade commission review

The United States International Trade Commission is investigating whether to impose additional tariffs on Australian lamb.

It has launched a global safeguard investigation to determine if lamb meat imported from other countries, including Australia, threatens the domestic industry.

Ambassador Jamieson Greer formally requested the investigation under the Trade Act on July 13.

It follows an October 2025 petition from the American Sheep Industry Association that claimed a flood of imported lamb was being sold at cheaper prices, displacing local production and eroding profitability.

Most of the imported sheep meat in the US comes from Australia. About 100,000 tonnes, valued at more than $1 billion, were sent in 2025.

Lamb and mutton imports to the US attract a 10 per cent tariff.

The Australian sheep industry expressed disappointment at the investigation but said it was ready to to respond.

"We are confident the Australian industry can deliver a robust, fact-based case demonstrating the mutual benefit of Australia’s trade," Australian Meat Industry Council (AMIC) chief executive officer Tim Ryan said.

“Australian lamb exporters have built longstanding relationship with US customers and consumers."

He said an increase in Australian imports had helped the US industry.

"[That] has ultimately underpinned the maintenance and growth of lamb consumption in the US," Mr Ryan said.

Sheep Producers Australia chief executive Bonnie Skinner said farmers would work together to put their case forward.

“[The] industry is well positioned to demonstrate the value of Australia's long-standing trading relationship with the United States,” she said.

“Australian supply complements domestic production and helps meet year-round consumer demand for lamb."

AMIC said the US trade investigation would look at imports from all countries and did not specifically target Australia.

The Australian government has backed local sheep producers as they try to avoid further tariffs or quotas.

Agriculture Minister Julie Collins said she was "disappointed by this decision to initiate a global safeguard investigation into lamb imports".

"I have been working closely with industry and will continue to advocate for Australian producers at every level," she said.

Sheep farmer and National Farmers' Federation vice-president John Hassell said he was concerned about the possible outcomes of a US investigation into lamb imports.

"The Americans and Donald Trump showed no mercy when it comes to doing tariffs, and that sort of thing, to protect his own people," he said.

"The outcomes might be that it's not so easy to get into the American market and then lamb prices fall again drastically and just creates another, I guess, crisis for the sheep industry in Australia.

"A fact-based, science-based … argument doesn't always win, as happened with the live sheep trade.

"So it could be quite devastating for the Australian sheep industry again."

'The lion's share'

Episode 3 commodity market analyst Matt Dalgleish said Australia provided 70 to 75 per cent of US sheep meat imports, with New Zealand coming in second.

"We are the lion's share of that imported product when you compare us to New Zealand, and beyond that there's not many that are significant," he said.

Mr Dalgleish said the American sheep flock had been in decline since the 1990s.

"They were producing about 160,000 tonne back then and nowadays, over the last decade, they've been lucky to get above 60,000 tonne," he said.

"So they can't really claim from a US producer perspective that the Australian product has been damaging their domestic market because the bulk of the decline happened decades ago."

The American Sheep Industry Association (ASI), which represents 42 state associations and 100,000 sheep producers in the US, has welcomed the investigation.

"We appreciate the leadership of the U.S. Trade Representative's Office in recognizing the serious challenges facing America's sheep producers and taking this important step forward," ASI executive director Mike Michener said in a statement.

"A healthy U.S. sheep industry supports rural communities, strengthens domestic supply chains, and helps ensure the United States retains the capacity to produce high-quality American lamb here at home.

"This action also helps protect America's domestic food supply at a time of growing global uncertainty."

Mr Dalgleish said the US would ultimately have to decide how to balance the needs of its farmers and consumers.

"The Trump administration have to consider the value that [the] Australian industry is providing to the US consumer," he said.

"There's that tug of war between the US producer finding it difficult to compete, but also the US consumer probably wants to be able to get access to good quality and affordable red meat."

The U.S International Trade Commission will collect testimony and data from all interested parties and is expected to issue its decision within 120 days.

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